Does my home insurance cover me during building work?

Almost two-thirds of UK homeowners who renovate their property are unaware that they could be in breach of the terms and conditions of their mortgage.

According to new research by insurance broker Insurance Tailors, when undertaking any new building work that affects the structure of the property, your home insurers need to be informed of your plans.

Could your home be at risk?

Some insurers will automatically remove home insurance cover completely during renovations. This doesn’t meet most mortgage provider’s requirements and can leave you without cover and in breach of your mortgage terms.

This is why it’s essential that you notify your insurance company to make sure your home is covered during the work. You may have to pay a nominal fee.

If you don’t let your insurers know and there is a problem with your building contractors or an issue occurs, your home may not be insured.

A survey in London has highlighted that just over half of home insurance claims made while the property was under construction or just after were rejected because the insurer had not been informed of the work before it started. This could leave you thousands of pound out of pocket if it happens to you.

What should you tell your insurers?

Not only should you tell your insurance company about any work you plan to do, but also you must remember to update your insurers once the work is completed. An insurer doesn’t need to know if you simply plan to redecorate or replace your kitchen, but they should know if you have structural work planned.

For instance, if you have added a loft conversion or extension, this increases the floor plan of the property and probably the value of the property too. Therefore, your buildings insurance cover would need to be updated with the revised floor plan for your property to be fully covered.

For your own financial security, it is important to keep your insurers up to date with any changes to your property to protect you if something goes wrong. It also means you are keeping within the rules set out by your mortgage provider.

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